Journal entries for depreciable asset transactions. Assume that on March 3 1 . Year 6. Boston Can Coiporation acquired a new machine for $16,000. The seller agreed to accept in payment $10,000 in cash and a 10 percent, one-year note for $6,000.

Boston Can Corporation estimated the new machine to have a service life of ten years and a salvage value of $1,000.

Boston Can Corporation had purchased a similar old machine on January 1, Year 1. for $12,000. The firm estimated that the old machine would have a useful life of eight years, after which it would have a salvage value of $800. It sold the old machine for $4,000 on April 30, Year 6.

Prepare datedjournal entries to record all transactions from March 3 1 .Year 6, through December 31, Year 8, including year-end adjustments but excluding closing entries.

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